The Days of Ziad Hafiz Razak

Assalamu Alaikum,

Have you read verse 131 of chapter 20. طه in the Holy Quran?

وَلا تَمُدَّنَّ عَينَيكَ إِلىٰ ما مَتَّعنا بِهِ أَزوٰجًا مِنهُم زَهرَةَ الحَيوٰةِ الدُّنيا لِنَفتِنَهُم فيهِ ۚ وَرِزقُ رَبِّكَ خَيرٌ وَأَبقىٰ

English-YusufAli translation
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Nor strain thine eyes in longing for the things We have given for enjoyment to parties of them, the splendour of the life of this world, through which We test them: but the provision of thy Lord is better and more enduring.

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It’s very hard to remind ourselves of the bigger perspective of this World and the Hereafter, especially when the reality of this World permeates our every sight and senses.

But the splendour of this World is but a pale imitation of the Eternal – and we must always live in remembrance of Him, so that the Ultimate Reality is always in sight, God-Willing!

This is clever: leveraging the powering the Internet to provide a robust and distributed platform for one-on-one advisory/support services. It has the potential to shake up hundreds – nay, thousands! – of local services, and empower many professional to finally unburden themselves of the shackles of the 9-to-5, and offer their services directly to the world! Trust Google to once again introduce massively disruptive innovation…

This is interesting: the power of satire to elicit insight on issues of the day.

This is powerful: how to measure the impact of employability and employer satisfaction of graduates, vs the cost that graduates have to pay to educational institutions. A “bang-for-buck” measure that Malaysian policy makers should seriously consider.

This is a very interesting article on the much-discussed “Millenial” generation, and their attitudes to public service (or, probably more accurately, political participation through elective office.)

In many ways, it confirms what I read and hear about many young people, in Malaysia too. There is deep frustration with the way elective politics is played, and profound sense of betrayal as young people observe the nitpicking and petty mud-slinging that makes up the charade of national politics in the modern age.

Perhaps this is just a phase, perhaps a down-cycle in the history of Malaysian politics. But the deep sense of disappointment, accompanied by the boldness with which young Malaysians express their views through social media, suggests that politicians may never recover the public esteem which the rakyat has long imbued them with.

 

This is how you exercise presidential powers. Liew Vui Keong, he the man.

In a bid to promote growth in its SME (small and medium enterprises) sector, Thailand’s Securities and Exchange Commission (SEC) has loosened regulations to promote the growth of private equity and venture capital funds to invest in SMEs.

Among others, the SEC has plans to offer capital tax gains exemptions to PE firms which back “government-supported businesses”. These are companies which are “technology-based, environmentally friendly and seen to enhance national competitiveness.”

Some observations:

1. The results remain to be seen, but it is refreshing to see governments looking to alternative investment methods such as PE to promote national objectives. In a toxic political environment where private equity is painted as being remorseless job-destroyers (Exhibit A: Mitt Romney), Thailand is pointing the way to a partnership model where risk capital is employed to achieve national objectives. Rather than stick to the old methods, the Thai government’s courage to experiment is impressive.

2. Private equity may turn out to be the best thing for SMEs, in terms of ensuring financial discipline and imposing focus and urgency. Malaysia’s own experience of state support for SMEs hasn’t always been a happy one. Stories abound of faceless bureaucrats and middle managers who turn away genuine entrepreneurs due to lack of paperwork or inability to meet arbitrary requirements. At the same time, there are also many instances of entrepreneurs who take state money and have little to show for it. By tying SME performance to the stringent returns requirements of PE firms, we might see a new funding model for SMEs where there is greater alignment of interest for SMEs to grow and thrive.

3. The proof is in the pudding. Of course, the results are what counts at the end of the day. While the Thai government’s new approach must certainly be applauded, the measures should be judged by the results they get. This is very much the mindset behind PE, and we will look to see how Thailand progresses on this initiative with great interest.